Penang to decide on proposal to revise density guidelines soon
The Penang state government will soon make its decision regarding a proposal to revise the current density guidelines to 128 units per acre in order to provide more affordable housing in the state.
Penang State Exco for Housing and Town & Country Planning Jagdeep Singh Deo said the proposal to raise the density from the current 87 units per acre is in the final stages of discussions and an announcement will be made soon.
“During a series of meetings with relevant stakeholders, it was suggested that the [87 units per acre] guideline be revised as they are facing difficulties selling large units that are deemed unaffordable (pursuant to the density guidelines),” Jagdeep said at the Penang International Property (PIP) mid-term review conference in Penang last Friday (Aug 5).
The proposed revision to 128 units per acre guideline will also take into consideration the affordable housing component for developers that come under this guideline.
The current 87 units per acre policy comes with the requirement that developers must ensure that 5% of their total project is priced at RM200,000; 15% is priced at RM300,000 and 5% is priced at RM400,000.
Under the new proposed density of 128 units per acre, it has been proposed that 5% of the developer’s project be priced at RM200,000 and another 20% be priced at RM300,000.
Meanwhile, on the performance of the current property market in Penang, Jagdeep said residential properties in Penang have shown a 15.67% quarter-to-quarter increase in property transactions from 3,110 transacted units (valued at RM1.21 billion) in 1Q2016 to 3,597 units (valued at RM1.44 billion) in 2Q2016.
“Nationally, the unit price index was 227.5 for all houses in Malaysia while for Penang, it was 262.2. This higher unit price index recorded for Penang shows that the average mean housing price in Penang is still on the rise,” Jagdeep added.
“These statistics prove that investing and owning a home in Penang continues to be highly desirable and this is a positive indicator for property developers in Penang,” he added.
Among other issues discussed during the summit included suggestions to allow developers to pay certain contributions by way of corporate guarantee instead of a bank guarantee; and for contributions to be capped at a fixed rate instead of being based on the existing market valuation.
The summit also discussed the formation of a State Planning Technical Special Committee to ensure a more efficient consideration for the applications of development projects.
Source: TheEdgeProperty.com.my
Oh My Dear Jagdeepy,
To be honest you must be kidding me, Jagdeepy. By revising the density to 128 units per acre from 87 units will definitely be a “good” way to reduce the pricing. But lets not forget the livability of the said apartment/flat. You had to ask yourself before deciding for Penangites.
“Will you live a place whereby the density is very high until you can’t breath properly?”
or
“Do you want to make Penangites to live in a ANTHILL instead of the current BEEhive?”
Instead of increasing the density, why not you find the root problem and solve it? why not maintain a ceiling price for construction material? why not input a ceiling price for property?
Do you know the current affordable scheme is a FAILURE? It was suppose to be AFFORDABLE, but people are increasing the pricing with so called upgrade and furniture.
GOD BLESS US FROM NONSENSE DECISION BY RICH GOV SERVANT PLEASE
@Micheal
I concur with Michael and start to doubt the many intentions mooted by our state govt – Don’t take us Penangites simply as pawns !
In term of revise density so that house price can reduced ? Have you do any survey on how many house is left unoccupied ? What is the reason unoccupied ? I observed that many people do property investment blindly they rather leht the house empty than sell it to those who need !
We all aware land is limited & it’s a very good & fast to grow wealth in property ! But as a government you should made a law to control this phenomenon if you have visious to let our development more healthy to the environment ! Land & property (especially residents) should not become a portion of the financial instruments !
Penang govt please look at our penang affortable house normally be priced at rm400k, is it truly affortable for Penangites? Are these affortable houses selling like cake or still many units of them remaining unsold ? Will these affortable houses priced at rm400k easy for Penangites to get their bank approved ?
I’m curious, how much profit margin is the developer looking at before considering to build affordable homes, I doubt they are not making any profits, probably just not as massive as they hope
yes still gt alot affordable project available, 400k should reduce to 200k or loan cant approve for those low income group, or just build luxury condo and sell above 600k to rich ppl due to they wont stay together with poor ppl.
what is the point of increase density when the price are as high but the size has reduced to a shoe box type ? Bangcurry Sing really poor in mathematics calculation.
My understanding of current state gov affordable housing scheme is, you have (1) Low cost grade (2) low medium cost grade (3) medium cost grade (4) condo grade. They are all called “affordable homes”, but being sold at different prices.
So it all depends on how much money you have, then you choose the one that suits your budget. Simple as that.
+1 agree with you.
it’s the people who want to choose 400k when they know they only can get loan for 200k. They should just choose 200k affordable.
You know nowsaday people want BIG and CHEAP. Afford 200k price tag but want 500k furnishing and good location, can get this water fish ?